Freight Integration in Actual Costing Udo Werner April 2014
Table of Contents Planned Delivery Costs in own ML Cost component Posting Freight Cost to ML via MR22
Integration of Freight Cost from SAP Transportation Management Freight Costs in Cross-Company Stock Transfers Selective Activation of Delivery Costs for Material Valuation
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Planned Delivery Costs in own ML Cost component Configuration Guide
Example for Freight Cost in Own Cost Component in ML This are the steps: 1.
Find out the consumption account for the example material
2.
Set up cost component assignment for planned delivery costs
3.
Create a PO with planned freight cost and post a goods receipt
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1. Find out consumption account – 1 1st Possibility: Post a consumption of the material to a production order with movement type 261 and look up the consumption account for the GBB posting line in the accounting document
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Find out consumption account – 2 2nd Possibility: Look up account determination
Account determination for transaction GBB
You need the valuation class The General modification can be looked up in table T156X for movement type 261 © 2013 SAP AG. All rights reserved.
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Find out consumption account – 3 3rd Possibility: Call function module MLCCS_KSTAR_GET in test mode and look up E_KSTAR
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2a. Assign condition Type to Origin Group
In transaction OKYO, the condition type that will be used in purchase orders to charge the freight cost has to be assigned to a specific origin group. • FRC1 is the condition type in the PO conditions • It is assigned to an origin group that is also called FRC1. Any other name would also work • It is important to have a blank valuation variant in the entry
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2b. Maintain Cost Component Assignment for Origin Group
In transaction OKTZ, the origin group has to be assigned to a specific cost component in the structure used for actual costing • FRC1 is the origin group from step 2a • It is assigned to cost component 40, Freight Costs • The account from step 1 has to be on the cost element interval maintained here
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3a. Create a Purchase Order with Freight Condition
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Freight Condition in PO Necessary properties of a condition that shall be assigned to an own cost component: 1. The condition uses an accrual 2. The condition is marked as statistical 3. The condition category is ‘Delivery Costs’ 4. The condition type (FRC1) matches to the one entered in OKYO where the origin group was assigned.
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3b. Enter a goods receipt
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Result: Freight Costs are Collected in Assigned Cost Component
The 105 MXN posted under freight condition FRC1 with accrual FR2 found the origin group FRC1 and this is controlled to go into the cost component ‘Freight Costs’
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Freight Invoice
An invoice for the freight costs might come from the supplier or from the freight service provider. We show an example where the invoice amount differs from the planned amount (108 MXN instead 105 MXN)
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Freight Invoice updating ML
The invoice clears the freight accrual account (FR2), creates a AP entry (KBS) and posts a price difference to the material (PRD) The PRD amount is collected in ML under the freight cost component
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Posting Freight Cost to ML via MR22
Freight invoice Posting via MR22 Often Freight Costs are not planned in the purchase order, but are coming in later, and some rules have to be applied to assign a freight invoice to materials. In such a case the costs might be posted manually or automatically via transaction MR22. With help of the reason for price change it can be achieved that these postings go into the freight cost component.
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MR22 with Reason code and origin group
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Revaluation Amount assigned to Freight Cost Component Post MR22 with the reason FRC account determination with the account modifier ZF1 Origin Group FRC1
in ML the price difference goes into cost component 25, freight cost.
There is also a BAPI to post the same: BAPI_MATVAL_DEBIT_CREDIT The enhanced reason for price change is activated with switch LOG_MM_SIT an available as of ERP 6.0 EhP6 © 2013 SAP AG. All rights reserved.
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Account modification Through the account modification ZF1 in the reason code both lines in the accounting document are redirected to freight-specific accounts
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Integration of Freight Cost from SAP Transportation Management
Integration of Freight Costs with SAP Transportation Management When using SAP TM (9.0 or higher) freight costs can be sent to ERP with all the necessary info to assign them to a material and condition type. Interface that updates ML is the freight settlement document created by ‘Cost Distribution for Shippers‘ The cost distribution is able to split the cost between materials e.g. proportional to weight or volume
http://help.sap.com/saphelp_tm90/helpdata/en/5b/5d73be618b4574ac8c9352045fa220/content.htm?frameset=/de/7e/b8bdf270d84b16ab8a755d09b11e81/frameset.htm © 2013 SAP AG. All rights reserved.
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Invoice Integration ERP-TMS: Order and Invoice Integration (LOG_TM_ORD_INT_II) SAP TM transfers freight costs and the allocated freight cost at the ERP item level to SAP ERP. This enables you to post financial details, with account assignments for the allocated costs. This applies from SAP Transportation Management 9.0 (SAP TM 9.0) or higher. http://help.sap.com/erp2005_ehp_06_hana/helpdata/en/8a/0c5d09a7794ae6938f9c8184f4251f/content.htm
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Cost Distribution - for Shipper Industries What is Cost Distribution? Accurate freight cost allocation across orders & materials for material valuation and order profitability analysis SAP TM
SAP ERP
Inbound Delivery • Freight Settlement Document (with cost distribution at delivery item level)
• Agency Business Document
Outbound Delivery • Freight Settlement Document (with cost distribution at delivery item level)
• Agency Business Document
Material Valuation
(with freight costs per material) CO-PA Sales Order Profitability
• Direct item-level or hierarchy-based freight cost distribution via weight; volume; weight * distance • Full freight cost visibility in all relevant SAP TM & ERP documents (freight orders, bookings, settlement docs, sales, purchasing, stock transfer orders, agency billing docs..) •BADI for customer-specific charge type rules / cost distribution calculation (i.e. pallet, distance) • Freight Cost Posting in SAP ERP at Material level for Material valuation as well as Sales order profitability © 2013 SAP AG. All rights reserved.
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Cost Distribution – Concept SAP ERP
7a 7b
Incoming Invoice
AB Posting
MIRO
SAPERP
CO-PA
ERP orders/deliveries
Material Valuation
1
6a
MM-PO MM-SES ...
CO
6b
ML Update via FSD With distributed costs
TM 8.x
TM 9.0 2
OTRs/DTRs
Transfer FSD + Distributed Costs to ERP
FUs
3 FOs FBs © 2013 SAP AG. All rights reserved.
4 FSD
Distributed Costs
5
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Typical Posting Pattern for FSD with Cost Distribution
Inbound Freight Cost Posting 6a. Freight Settlement Document (FSD) (Step 6a)
Freight Clearing Account (GBB)
GR/IR Freight (WRX )
100
6b. VB posting for distributed costs
(Step 6b) for Mat 1
100
BSX/PRD Inventory or Material Price difference
Freight Clearing Account (FR1)
for Mat 2
50 30
50 30
for Mat 3
20
20
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Cost Distribution – Summary for TM 9.0 1. Cost Distribution take place in Freight Order (FO) Freight Booking (FB) and Freight Settlement Document (FSD). 2. Transfer of the distributed cost to SAP ERP is only done with the Freight Settlement Document (FSD) 3. Distribution of the cost to the Level of Delivery Item for Shipper Scenario 4. Distribution of the Cost by Weight, Volume and Distance & Weight within TM. 5. Customer extension possible via BADI to do other kinds of distribution like piece, pallets, distance and other aspects like weights etc.
6. Automatic distribution of the Freight Cost at the time of FSD creation. 7. SAP ERP integration as a Single step via intermediate Account postings. 1. FSD integration posting as in TM 8.x (PO/SES) 2. Material Valuation/CO-PA Posting 8. Freight Invoice variance posting in SAP ERP will post variances to Material Ledger by Material and condition type. An assignment to freight cost component can be configured as shown before. © 2013 SAP AG. All rights reserved.
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Freight Order with 2 Inbound Deliveries
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Freight Settlement document
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Cost Distribution – Summary & Detail
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Freight Cost Split Posting in SAP ERP - 1/2
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Freight Cost Split Posting in SAP ERP - 2/2
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Material Valuation Posting of Freight Cost Example with Material Ledger
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Freight Costs in Cross-Company Stock Transfers Integration with Cross-Company Actual Costing and Group Costing
Overview Cross-Company Actual Costing Sales Processes between Company Codes in the same System Legal view adopts the sales price (including freight) Group view adopts the cost from the sender plus freight
Company B
Company A
Valuated stock in transit
Logistics Introducing a valuated stock in transit that either belongs to the sending or the receiving plant New order types and movement types
Accounting Actual costing connects the value chain across company codes Inclusion of cross-company profits (or markup) into the cost components © 2013 SAP AG. All rights reserved.
Online Documentation: Cross-Company Actual Costing http://help.sap.com/erp2005_ehp_06/helpdata/en/c5/616893ba30402faeb09c151b4fa 24c/frameset.htm
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Freight Costs in Cross-Company Actual Costing In cross company sales processes freight costs are expected to be added to the inventory value in both legal and group view. IFRS demands the activation in inventory
Invoice
Freight Invoice 100
Supplying plant
Receiving Plant
LV
GV
Total cost
1000
1000
Materials
500
Labor
Overhead
In case of planned delivery costs in PO Assignment to own costs component as for an external supply ML will pick freight costs up and activate in both legal (LV) and group valuation (GV) in addition to the material costs.
LV
GV
Total cost
1200
1100
500
Materials
1100
500
400
400
Labor
0
400
100
100
Overhead
0
100
Freight
100
100
CC Markup
100
0
Freight
The MR22 method can be used if freight costs are not part of the conditions in PO
1100
CC Markup
0
0
MR22 can post also in only one valuation view, e.g. GV
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Freight Costs in Group Costing Group Costing is the equivalent to crosscompany actual costing in standard cost estimates, based on plan data Legal valuation: Price from purchasing info record Group valuation: Valuation price from Sender The difference between both will be shown as margin
Online Documentation: Group Costing http://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/cb846a43a311d189ee0000e81ddfac/frameset.htm
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Transportation Costs in Group Costing – The Issues Legal valuation: The usual way for procured materials is reading purchasing info records including planned freight costs The Sub-strategy for purchasing info records should be ‘Quotation price via condition table. With that the transport costs can be assigned to own cost components
Group valuation would directly read cost estimate from sender, without adding transport costs. Issue: In the comparison freight costs will be shown as part of the margin because they are not in the group valuation
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Transportation Costs in Group Costing - Workaround Workaround: Adding freight cost via overhead calculation in both legal and group view NOT reading freight cost from Info record, neither in legal view, nor in group view 1. Maintain an costing sheet for the valuation variant used (OKKN) 2. Activate Overhead Costs for stock transfers 679587 - Raw mater. cost estimate w/ stock transfer special procurem Implementation of BAdI SUR_STOCK_TRANSF_CK. o Set parameter EX_SURCHARGE_ACTIVE: calculate overhead rates for a transferred material. o Set parameter EX_KALSM_RAW to 'X'
3. Use User-Exit COOM0001 to set freight costs as overhead rate 116808 - Documentation enhancement COOM0001
User EXIT_SAPLKASC_002 to set the rate according to the freight cost Function module: CK_F_KALKTAB_GET with position type M provides the origin of the transfer Function module: CK_F_GET_CAUFVD provides the target of the transfer The rate could be read from a z-table or from an info record EXIT_SAPLKASC_003: Overheads: to set a cost element. Aim: assign to the correct cost component
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Selective Activation of Delivery Costs for Material Valuation
Selective Activation - Overview Customer might want to post planned delivery costs, but legal or internal rules demand that the delivery costs should not become part of the materials cost or inventory value Note 1704534 - Deactivation of delivery costs for ML update describes a configuration to achieve that.
The deactivation can be configured for a certain company code, valuation area, and even for a currency type. With parallel currency types (e.g. group valuation 31 in parallel to local currency 10) it can be achieved that delivery costs like freights or duties create a difference between both views.
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Selective Activation - Example Configuration steps: Maintain condition type in TCKMLBNKS (here: neutralize FR3 by ZH1) Assign the rule to company code, valuation area, currency type via table TCKMLBNKSZ
From the condition master record (cf. slide 10), use the Accruals entry for the entry
Effect: Additional lines will be added to the GL document that cancels the PRD posting caused by the condition type (FR3) and posts it instead to the new transaction (ZH3) ML excludes from the receipt price the contribution of condition FR3
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Thank you Contact information:
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